Somnigroup price target lowered to $68 from $70 at Piper Sandler

Piper Sandler lowered the firm’s price target on Somnigroup (SGI) to $68 from $70 and keeps an Overweight rating on the shares. The PSC Mattress Retailer survey for March had sales at -0.9%/flat year-over-year on a mean/median basis – a surprising improvement from February, the firm says. However, adjusting for the Leap Day shift and the Easter shift, Piper thinks both months trended at negative mid-single-digits year-over-year. Also, with Q1 fully complete, sales for the quarter at approx. -1% was a slight step down from Q4. The outlook for Q2 is surprisingly positive considering the Easter shift that will hurt April and declining consumer confidence, adds the firm.